Dinesh Divekar
Business Mentor, Consultant And Trainer
Management Consultancy
+1 Other

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Hi Seniors, My company is outsourcing optical business to a organisation who is also willing to absorb the employees who are running the optical business currently in my organization. The employees are not willing to move to new organisation but willing to work in any other department but management has decided to move them to new organisation. Is there any legal implication if we force employees to join new organisation
The new organisation is wiling to take them a current salary and following all the policies as we do.
Request for advise, Thanks
Harish Kumar (A M - HR)

From India, Delhi
Dear Harish,
Your company has outsourced certain section of business. There could be business merits while doing so nevertheless, please remember that employees are your assets and their forceful transfer to the outsourced company could generate resentment. This is turn could reduce business productivity itself. Therefore, move cautiously on this count.
Solution to this problem could be to tell that though they are told to work in outsourced company, at the time of quitting employment, their service in your company will be counted for the computation of gratuity. Find out whether it soothes their tempers. However, in such case, their new employer needs to issue them letter on the company letterhead on acceptance of the liability for the gratuity.
If the employee still do not accept your proposal then one more solution is to keep them on the roles of your company but depute them to the outsourced company. However, under such circumstances, they will be governed by the administration of that company but just salary will be given through your company.
Dinesh Divekar

From India, Bangalore
You are reminding us of the famous lines from God father, Don Corleone telling "I'm Gonna Make Him An Offer He Can't Refuse", perhaps the best movie quote in history. It appears you are trying to sell the targetted employees the idea of shifting to the transferor organisation but, is there a matching effort from new organisation to entice the target employees. Unless both the efforts go hand in hand, the results may not be as wanted. The options available with you have been outlined by Dinesh Divekar Sir, in addition the new company can think of some incentive like increment or attractive financial incentive to the optees. Worst come, you may have to patiently explain that there is no place elsewhere with you, probably they feel there is some scope to adjust them in your set up which you will have to categorically deny.
From India, Mumbai
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